04 - Laserfiche WebLink

Ayes: Councilmembers Brown, Narum, Pentin, Olson, Mayor Thorne Noes: None Absent: None 14. Public Hearing: Introduce an ordinance amending Title 3 of the Pleasanton Municipal Code to add a new Chapter 3.44 establishing a Johnson Drive Economic Development Transportation Fee and adopt a resolution amending the Master Fee Schedule to set the fee Mayor Thorne declared a potential conflict of interest, turned the meeting over to Vice Mayor Olson and left the City Council Chamber. Councilmember Brown reported she owns $2,900 in Costco stock, acquired through a third-party investment firm, declared a conflict of interest, recused herself, and left the City Council Chamber. Director of Finance Tina Olson presented the report and displayed a PowerPoint presentation addressing Location and Description of the Johnson Drive Economic Development Zone (JDEDZ), the Purpose of the JDEDZ, Transportation Improvements Required to Accommodate Increased Daily Trips from JDEDZ at Full Build-out, Allocation of $15.07 million Cost of JDEDZ Transportation Improvements to Development, Timing of Known Development = 66% of Daily Trips Generated in JDEDZ, Timing of Unknown Retail Development = 44% of Daily Trips Generated in JDEDZ, Proposed JDEDZ Transportation Fee — Charge to Future Developments in JDEDZ, Proposed JDEDZ Transportation Fee, JDEDZ Transportation Fee— Credits, Meeting with JDEDZ Property Owners, and JDEDZ Fee —Staff Recommendations. Councilmember Narum inquired whether the fee would be in addition to the normal Traffic Impact fees and Director of Finance Olson responded affirmatively. Councilmember Pentin stated he understands the credits but asked whether the City always reimburses costs related to CEQA and City Manager Fialho reported it depends on the situation. Normally, large-scale projects require the developer to deposit money to the City and the City draws from that type of funding to pay for Environmental Impact Report (EIR) efforts. In this case, the investor, Nearon Enterprises, owns the sites and put up their own capital to help finance environmental review. The City is allowing credits through the proposed new fee. There is a land transaction occurring between Costco and Nearon, of which the City is not a party, and addressed the process for the hotel sites. Director of Finance Olson added the $400,000 is included in the overall cost estimate of $21.4 million for design, construction and environmental work. Councilmember Pentin inquired whether the developer would pay these fees under other circumstances than through the JDEDZ. City Manager Fialho responded they would not and reported the JDEDZ is a unique situation. Nearon is asking for a proportional credit for the amount they financed upfront. Councilmember Narum inquired as to traffic fees if the Costco loan were to be paid off before the properties are developed and Director of Finance Olson reported the fees would go back into the City's General Fund. Councilmember Pentin confirmed the credit Nearon would obtain as a proportion of the other property owners' share. Director of Finance Olson responded affirmatively, noting the City is only allocating a portion of the cost. City Council Minutes Page 6 of 8 April 17, 2018